A recent press report said that Bank of Maharashtra has planned to further bring down its NPAs to 2 per cent this fiscal. The bank offers Term loan, home loan, overdrafts, Letters of Credit, Guarantees and many more such products under its credit basket
Mr. A.S. Bhattacharya, Chairman and Managing Director, of the bank told the press that the bank has doubled its recoveries last fiscal by setting up ten Micro Asset Recovery Cells, which are dedicated to handle only NPAs. He added saying that the bank has planned to focus on NPAs this fiscal by opening five more such cells, in addition to the five asset recovery branches that has been formed earlier.
He said that the gross NPA of the bank has been brought down to Rs 1,174 crore from Rs 1,468 crore in September 2010 as on March 31, 2011and the bank has planned to bring it down by about Rs 200-300 crore.
Mr. A.S. Bhattacharya said that the bank has brought down its NPAs without manual intervention, depending largely on their internal core banking solutions to automatically identify the NPAs; about 64 per cent of the bank’s NPAs are below Rs 10 lakh and 54 per cent below Rs 5 lakh. He said that the spread has helped the bank improve its recoveries.